Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Quarterhill Inc T.QTRH

Alternate Symbol(s):  QTRHF | T.QTRH.DB

Quarterhill Inc. is a Canada-based company, which is engaged in providing of tolling and enforcement solutions in the intelligent transportation system (ITS) industry. The Company is focused on the acquisition, management and growth of companies that provide integrated, tolling and mobility systems and solutions to the ITS industry as well as its adjacent markets. The Company’s solutions include congestion charging, performance management, insights & analytics, analytics, toll interoperability, mobility marketplace, maintenance, e-screening, tire anomaly detection, multi-modal data, intersection management, and others. Its tolling includes roadside technologies, commerce and mobility platforms, audit and enforcement, and tolling services. Its safety and enforcement comprise commercial vehicles, automated enforcement, freight mobility, smart transportation, and data solutions. The Company’s wholly owned subsidiary is International Road Dynamics Inc.


TSX:QTRH - Post by User

Post by v_guerrieroon Dec 19, 2022 2:50pm
201 Views
Post# 35180377

Interest rate risk

Interest rate risk

How is there no investor risk statement in relation to interest rates in the annual information form?  

There is more debt than cash on the balance sheet.    

The interest and principal payments double every year until the balloon payment is due in 2026.  

They do not have the cash flow to pay all their commitments until then.  They will be very short.  

And, worse, the revenue is also dependent on interest rates.  All of the government contracts are long term in nature and rely on governments issuing debt.  So they have interest rate risk on the balance sheet.  And then they have double exposure with revenues tied to long term interest rates from government purchases.

A classic pro cyclical business that had no business trading at 15-20X multiples.  Pro cyclical businesses like this typically trade at 5-8X.  Exactly what Align Capital paid for it.  


 

<< Previous
Bullboard Posts
Next >>